Coinbase IPO: Goldman Sachs to take charge

  • Coinbase has filed for an initial public offering (IPO) with the SEC.
  • The crypto firm wants Goldman Sachs to lead this public offering.

Coinbase recently revealed that it has filed for an initial public offering (IPO) with the United States financial regulator, the Securities and Exchange Commission (SEC).

According to the official blog post, the exchange had filed for a “draft registration statement on Form S-1” with the SEC. A crypto analytic firm, Messari, went on to reveal that Coinbase valuation is expected to rise to as high as $28 billion when its IPO is launched.

There have been rumours that the crypto firm was looking to go public since the middle of the year, but no substantial effort was made until this week.

Coinbase is one of the leading crypto firms in the United States. The firm is well noted for being able to pull in institutional investors in recent times, especially now that the public perception of crypto assets has greatly improved.

An interesting fact about Coinbase is that it has a trading volume of over $300 billion, and it also has over 30 million active users. Another notable fact is that Coinbase co-founder, Fred Ehrsam, once worked with Goldman Sachs between 2010 and 2012.

Goldman Sachs’ views on cryptocurrency have changed 

Goldman Sachs had recently changed its view on cryptocurrency when it recently reversed its decision on digital assets. The bank had appointed Mathew McDermott as its Global Head of Digital Assets in August.

In May, the bank had released a report in which it stated that it did not count cryptocurrencies as an asset class. However, in what appears to be a retraction of its earlier stance, the bank stated that gold and Bitcoin could exist side by side.

Goldman Sachs also admitted that Bitcoin was gradually acting as a substitute for gold as a currency of last resort.

Coin valuation has grown to the highest since 2018. The rise in the valuation makes this time one of the best periods for Exchanges to go public.

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